Automotive Chip Shortage

Microchip

If you’re in the market for a new car, you’ve likely heard about the automotive chip shortage. This issue is affecting automotive manufacturers worldwide, and it may affect your purchasing experience. So, why is there a chip shortage? Let’s start by explaining the function of the automotive chip. These chips are semiconductors, used by many other appliances we use daily, from your washing machine to your phone. When the pandemic hit, many began purchasing devices with semiconductors, and the supply could not match the demand.

This and other issues have led to the automotive chip shortage, and it seems to be affecting everything, from the latest technology to new car sales. Although the end of the chip shortage is not in sight, it is slowly starting to improve! So, if you’re in the market for a new vehicle for your adventures around Beaverton, come stop by and see us at Mercedes-Benz of Portland so we can get you the best deal possible!

Continue reading below to learn more about how the chip shortage could affect your next vehicle purchase and how long it will take. Join the experts at Mercedes-Benz of Portland to have all your questions answered. If you still have questions, feel free to contact us anytime!


Why is There a Chip Shortage?

So, you may be wondering, why is there a chip shortage? The chip shortage is due to increased demand and not enough supply of semiconductor chips. Throughout the coronavirus pandemic, there has been an increase in purchases, such as electronics, that require a semiconductor chip. Therefore, this shortage has trickled down to the automotive industry as well.

Products that needed a chip during production either slowed or came to a complete standstill, resulting in an increased price. Although products with semiconductors are popular around the Wilsonville area, the automotive industry bore the brunt of the shortage.

One of the main reasons that the car chip shortage is occurring is due to the sheer length of production needed to properly assemble a semiconductor chip. The chips have to be crafted in a sterile environment to make sure no dirt or debris get on the chip, which can cause it to malfunction. Furthermore, the semiconductor chips are very small and require extreme care to build.

With the many restrictions and other issues that have resulted due to the coronavirus, factories that build the semiconductors could not operate at full capacity. All of these issues have caused the chip manufacturing process to take even longer, resulting in more demand than supply.


How is the Chip Shortage Impacting the Supply of New and Used Vehicles?

Although it’s true that numerous industries are negatively impacted by the chip shortage, the automotive industry has taken the hardest hit. This is mainly due to the fact that one vehicle often needs hundreds of these chips to make sure that its many different components operate properly. Therefore, the automotive chip shortage has caused manufacturers to slow or completely stop production of some vehicles. In short, this means that there will not be as many vehicles available for sale at dealerships with fewer models and trim levels. The car chip shortage has also caused prices of vehicles to increase significantly due to the increased demand between dealerships.

Even used vehicle sales are affected by the shortage. This is due to a lack of new vehicles, and dealerships scrambling to find used vehicles to add to inventory. Therefore, consumers can expect to pay as much as 20% to 30% more. However, if you’re looking to trade-in your used vehicle, you may be offered a higher price due to the rise in demand.


How Much Longer is The Chip Shortage Going To Last?

There actually is light at the end of the tunnel for the car chip shortage, as it’s expected to end quite soon. Although no one knows for sure when it will end, the increase in covid-19 vaccinations has led to many places around the world lifting their covid-19 restrictions. When the factories can once again operate at full capacity, you will start seeing more vehicles in showrooms around Vancouver.


Can You Still Purchase from Mercedes-Benz of Portland?

Yes! Regardless of which vehicle you need to elevate your commute around Mercedes-Benz of Portland, we’re making sure we have enough vehicles to meet the demand of our customers. You can check out our inventory and get in touch with us when you’re ready to buy!


Come See Your Next New or Used Vehicle at Mercedes-Benz of Portland

Now that you know that you can still buy vehicles from Mercedes-Benz of Portland in Portland, come check out our new vehicle inventory and meet with our finance department to get the buying process started. If you have a vehicle to trade, use our value your trade tool to get an estimate of what your vehicle is worth!


Our New Inventory


Our Used Inventory


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